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Benchmark International has Successfully Facilitated the Transaction Between Richlyn Systems Limited and Pennine Holdings Ltd

Benchmark International has advised on the transaction between bespoke software provider, Richlyn Systems, and Sheffield-based Pennine Holdings.

Established in 1983, Richlyn Systems is a specialist software and web developer, providing industry tailored software development, standalone software packages and contractual software maintenance to a diverse range of niche B2B clients in industries such as commercial property, health, manufacturing and distribution.

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Pennine Holdings focuses on acquiring and developing IT related businesses with a view to creating synergies and improving performance.

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Benchmark International Facilitated the Transaction of BobCAD CAM, Inc. to Harris Computer Corporation

Benchmark International has facilitated the transaction of BobCAD CAM, Inc. to Harris Computer Corporation.

BobCAD-CAM, Inc. based in Clearwater, FL, is a leader in CNC programming software for milling, turning, routing, and wire EDM. It combines CAD (computer-aided-design) and CAM (computer-aided-manufacture) functionality into a single interface. Through its proprietary software, the company provides manufacturers a powerful and easy to use CNC (computer numerical control) programming software.

Larry Pendleton, CEO of BobCAD Cam, Inc. commented regarding the transaction, “We are excited to enter this new phase of our company’s growth. We’re especially thankful to the entire Benchmark International team that supported us in the process. As our M&A advisors, they were extremely knowledgeable, thorough and professional during the entire transaction. The Benchmark International team helped us secure multiple offers from strategic, financial, domestic and international buyers, and we couldn’t have gotten this transaction done without them."

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Harris Computer Corporation provides mission critical software solutions for utilities, healthcare, local governments, public safety, and schools throughout the U.S. and Canada. Harris has offices throughout North America. Harris is a wholly owned subsidiary of Constellation Software, Inc. CSI is a publicly traded company on the Toronto Stock Exchange. Trading symbol CSU.

This acquisition represents a tremendous opportunity for both businesses and their teams to strategically accelerate the rate of profitable growth.

Benchmark International's Transaction Director, Leo Vanderschuur commented, "It was a pleasure to represent BobCAD CAM in this transaction. Throughout the process, Larry and his team were exceptionally responsive, diligent, and professional. This acquisition represents a tremendous opportunity for both businesses and their teams to strategically accelerate the rate of profitable growth. On behalf of the numerous Benchmark International personnel that worked on this opportunity, we congratulate both teams on reaching this goal."

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Benchmark International has Successfully Facilitated The Acquisition Of Credex Systems, Inc. by Valsoft Corporation, Inc.

Benchmark International has successfully facilitated the acquisition of Credex Systems, Inc. (Credex) by Valsoft Corporation, Inc. (Valsoft). Credex is a vertical software solution that offers loan origination and servicing software. The cradle-to-grave software solution originates and administrates a loan throughout its existence, serving financial entities and their client base. Valsoft acquires and develops vertical market software companies, enabling each business to deliver the best mission-critical solutions for customers in their respective industry or niche. A key tenet of Valsoft’s philosophy is to invest in well-established businesses and foster an entrepreneurial environment that shapes a company into a leader in its respective industry. Unlike private equity and VC firms, Valsoft does not have a predefined investment horizon and looks to buy, hold, and create value through long-term partnerships with existing management and customers.

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Michael Lightfoot, President and owner of Credex said “The sale of Credex to Valsoft was a quick process that took a number of turns during diligence. Throughout the engagement with Benchmark, the team acted as true advisor helping to walk me through each step of the process, and maintain the majority of my attention on running Credex on a day-to-day basis. I also appreciate the speed and transparency Valsoft operated with, allowing to move from first interest to a deal closing within 5 months.

Chris Malouf, Associate of Mergers & Acquisitions at Valsoft, said “We are thrilled to have completed the acquisition of Credex. Pairing Michael’s expertise with our firm’s resources will allow us to seamlessly enter this market. We have plans to continue backing Michael Lightfoot as President of Credex and lead the charge for Valsoft’s expansion into loan origination and servicing.

Benchmark International Associate Transaction Director David Steverson stated, “We’re extremely excited for Michael Lightfoot, the Credex family, and the Valsoft team. This transaction allows Valsoft to maintain their investment thesis while entering a new market, loan origination and servicing. Partnering Credexproduct offering with Valsoft’s industry knowledge and wealth of resources will allow Credex to develop into a prominent player within this market.

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Top 10 Industries for Private Equity Investment Revealed

A study by Private Equity Info has identified the top 10 industries that private equity firms have been acquiring during 2018. Below is a breakdown of the industries along with why they have been so popular with private equity firms.

1. Manufacturing

Manufacturing features on the list, in part, as a result of advancements in manufacturing. With automation, processes are made more efficient in many different sectors such as technology, aerospace, automobile and medical devices, making manufacturing companies an attractive prospect for private equity firms as they can utilise the technology in their portfolio companies and it is a good investment.

Watermill Group is a prime example of a private equity firm acquiring manufacturing companies. It currently has three manufacturing companies in its portfolio and within the past year acquired Andaray (Holdings) Limited and its subsidiary Cooper & Turner.

Commenting on this, Steve Karol, Managing Partner at Watermill Group said, “We are bullish on manufacturing in North America. Advanced manufacturing is creating a lot of new opportunities in many different sectors for many different companies.”

 2. Software

Similar to manufacturing, the software industry is popular with private equity firms as it can be utilised within other sectors for their advancement.

Software can be utilised in all manner of sectors and is proving particularly popular in retail as it can detect changes in customer attitude. While a valuable asset to have, it is incredibly difficult for other sectors to replicate what the software can do, therefore lends itself as an add-on to other companies.

Proof of this is within European M&A. Within the last year, software M&A activity set a new record for the number of transactions conducted and one of the main drivers for this growth was private equity, with statistics from Mergermarket showing that there were $11.2 billion of private equity deals conducted out of the $24.7 billion overall total for 2017.

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 3. Technology

Once again, private equity is investing as technology is a useful asset to be used to improve portfolio companies.

What has been interesting over the past year is how private equity firms, themselves, have started to utilise technology for their own benefit, not just for the benefit of portfolio companies. For example, artificial intelligence systems are now being used to screen investment opportunities. This phenomenon is not expected to slow down either, as a survey by Coller Capital shows three quarters of investors believe their private equity programmes could be improved by the use of external data sources such as third party software and cloud applications to the digital marketplace.

 

 4. Healthcare

There is an interest in healthcare from private equity given the fact that this is a growth sector because of the ageing population and the fact that the system is fragmented and needs to be consolidated. Recent acquisitions in this industry include that of Envision Healthcare by KKR in June 2018.

It’s particularly good news for healthcare companies in the UK, as private equity firms have been increasingly active in this market, believing the sector will fare well throughout Brexit.

 

5. Data

Data, in a similar way to technology, has been popular with private equity firms because of both acquiring the assets for their portfolio companies and because data can be used within the transactions themselves.

The use of data and analytics in private equity is gaining momentum as it can be used to identify issues at a quicker rate and focus the due diligence process, enabling both the buyer and seller to close a deal faster. It is important that a deal can be closed quickly for private equity firms, as record amount of dry powder available means that there is a lot more competition in the market.

 

 6. Oil & Gas

As the oil & gas industry has strengthened in 2018 with a rise in commodity prices, costs and emerging technology the market is forecast to accelerate, with an expected global value of $2,627.4bn by the end of 2022, compared to $1,977.3bn in 2017.

This could make the industry an attractive prospect to private equity buyers although, that being said, oil & gas has always been a popular industry for private equity investment as it is a commodity that is always in demand, it produces a steady cash flow, there are high barriers to entry into the market, and it attracts strong profits.

 

7. Medical

While the medical industry has some crossover with healthcare, there is more of a focus on the area of medical devices, particularly within manufacturing and research. As innovative new drugs and devices are continually coming to market this is attractive for private equity. A recent acquisition in this sphere includes Mérieux Développement and Gimv’s acquisition of Stiplastics Healthcaring.

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8. Construction/10. Engineering

While construction and engineering appeared in eighth and tenth places respectively, there has been an increased presence of private equity firms in the combined engineering and construction industry. While last year saw an increase in private equity exits, there was also an increase in acquisition activity.

One notable transaction in 2017 was that of Warburg Pincus’ acquisition of Service Logic. This acquisition is a key example of why private equity interest has increased as Service Logic is a HVAC and mechanical services provider, an area which private equity firms are eager to enter because of the recurring revenues available. There has been even more interest in recent years as the aftermarket is growing as a result of a need for it within the construction industry.

 

 9. Transportation & Logistics

Private equity in the transportation & logistics industry has emerged as a large player since the 2008 financial crisis as it worked at consolidating a fragmented market and financing expansion. In 2014, there was a shift to publicly trading companies acquiring transportation & logistics companies, and private equity took advantage of a buyers’ market and sold. By 2015, however, private equity was back to being the main contender as spending slowed down from publicly traded companies due to their stock prices falling, whereas private equity had the necessary resources.

One such company that specialises in transportation & logistics acquisitions is Greenbriar Equity Group, with the majority of its current portfolio dating back to 2015. Some of its recent acquisitions include The Whitcraft Group (April 2017) and LaserShip (March 2018).

 

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Call Benchmark International today if you are interested in an exit or growth strategy or if you are interested in acquiring.

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Benchmark International Facilitates the Sale of Database-Brothers, Inc. to 3rd Millennium, Inc.

Benchmark International is delighted to announce that 3rd Millennium has successfully completed the acquisition of Database-Brothers, Inc.

Database-Brothers, Inc. is a developer of database performance tuning software located in Austin, Texas. 3rd Millennium, Inc., a publisher of software products located in Waltham, Massachusetts, was looking to expand its market reach and product offerings. An acquisition with Database-Brothers, Inc. was a viable option and made it possible to achieve this goal.

The Database-Brothers, Inc. CEO expressed “The greatest measure of a company is doing what they say they will. In the case of Benchmark [International], they not only did what they said they would, but also, did more. I would definitely use them again and would recommend them to anyone who asked.”

 

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President and CEO of 3rd Millennium, Ousama Shamma, stated “Working with Benchmark [International] has been very productive and efficient. Throughout the process they were constantly engaged, followed up on all the issues, and provided a professional and courteous atmosphere that enabled the deal to complete in a timely manner.”

Database-Brothers Inc. will continue to operate under the name DBI Software as a division of 3rd Millennium. Employees from both companies will work on all combined software products and services.

Benchmark International analyst, Keegan Rinn said “Both our client and the acquirer were eager to close the deal quickly and efficiently. We streamlined the process as much as possible and tried to be proactive instead of reactive to any problems that could have occurred.”

 

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Benchmark International Advises on the Sale of Furlong Business Solutions Limited to Volaris Group

Benchmark International is pleased to announce the sale of Furlong Business Solutions to Volaris Group.

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Benchmark International Facilitated the Transaction of Conarc, Inc. to Swiftcurrent Holdings, Inc., an Affiliate of ESW Capital, LLC.

Benchmark International has successfully negotiated the sale of Conarc, Inc. (“Conarc”) to Swiftcurrent Holdings, Inc. (“Swiftcurrent”), an affiliate of ESW Capital, LLC ("ESW"). The transaction represents the conjoining of two best-of-breed solution providers.

Based in Alpharetta, Georgia, Conarc develops and sells client management software solutions used in a variety of industries including finance/accounting, real estate, healthcare and insurance. Conarc’s flagship content collaboration software product, iChannel, was built from the ground up by the Conarc development team, allowing the company the flexibility to offer a multifaceted solution with the ability to customize features to client specifications. Additional programs within the Conarc suite of products include a customer relationship management solution, workflow module, a file management system and multiple finance and accounting database products.

For nearly 20 years, Conarc has been committed to finding innovative ways to connect people, businesses, and ideas. With a current presence throughout the United States and Canada, Conarc remains dedicated to continuing improvement and growth.

 

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Based in Austin, Texas, Swiftcurrent is part of the ESW Capital group (www.eswcapital.com) and is specifically focused on acquiring and growing industry-focused business software companies. ESW buys, transforms, and runs mature software and technology companies. By taking advantage of its unique operating platform, ESW revitalizes its acquisitions for sustainable success while making customer satisfaction a top priority. ESW and its affiliated companies have been in the enterprise software space since 1988, and the group includes notable brands such as Trilogy, Aurea, Versata, and Ignite Technologies.

Benchmark International’s Tyrus O’Neill acted as the lead on this transaction and was successful in pinning down the needs of both parties involved, “This is one of those transactions where the parties were truly a good fit right from the start.” O’Neill stated, “On behalf of Benchmark International, we are thrilled to have been able to work alongside our client, Conarc, in this transaction. Chet Joglekarhas built a tremendous suite of software solutions and we believe it is a perfect fit for Swiftcurrent.” Senior Associate, Sunny Garten, added, “We have really enjoyed working with our client, Chet Joglekar, and would like to take this opportunity to wish both parties the best of luck moving forward.”

Conarc, Inc. CEO and Founder, Chet Joglekar, stated, “Benchmark International’s hands-on approach during all aspects of the transaction process was fundamental in our successful deal closing. Benchmark’s industry knowledge and relationships proved to be highly valuable as they assisted us in identifying a buyer that fits our innovative culture and provides Conarc with the resources necessary to continue the company’s trajectory of rapid growth.”

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RX30 Client Testimonial {video}

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MSA Software Client Testimonial {video}

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